Gati Limited’s (Gati) Q3FY23 performance missed our estimates owing to lower than expected volumes and higher costs. Key points: 1) surface express volumes grew 6.6% YoY (1.4% QoQ) to 284.8kte, lower than our estimate of 288kte; 2) EBITDA margin declined slightly to 4.4% (Q2FY22: 4.6%) due to higher expenses and slower than expected cost rationalisation.